What is driving the energy price hike and which companies could benefit from it? ABG Sundal Collier’s co-head of research John Olaisen shares his thoughts:

What factors are driving energy prices upwards?
“We have seen sharp increases in most energy prices (oil, gas and electricity) lately. There are several factors behind the increases, but the general driver is a sharp recovery in the demand for energy. At the same time, there are supply issues like bottlenecks in the value chains”, John Olaisen explains.
Which Nordic equities have benefitted the most?
“The obvious winners are the energy producers. Some good examples are oil companies like Equinor and electricity producers like Bonheur. Both are basically exposed to the spot price and are thereby seeing a jump in profitability. Other companies, like Ørsted, have mostly long-term price contracts for their electricity and are not benefitting to the same extent in the short term”.
Any companies that you will keep an extra eye on right now?
“The higher energy prices are leading to an increase in the number of new energy projects, which is the key driver for the companies providing services to the energy industry. We therefore like companies like OX2 and Aker Solutions”.
Will energy prices drive inflation?
“Yes, that has already happened and could turn out to be a major issue in 2022”.
What’s your outlook on energy prices going forward?
“We foresee somewhat lower energy prices in 2022 compared with now. However, we are likely to see generally high price levels, but also more volatility”.
Many Nordic industrial companies are big energy consumers. How are they coping with the higher prices?
“The high energy prices have clearly had negative effects. For instance, we have seen that the fertiliser producer Yara has been forced to cut production”.
Will the price hike affect the green transformation on the energy market?
“Yes. We think that the high energy prices, and in particular the high electricity prices, will lead to a faster transition to more renewables.”
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